Value Chain Model and Internal Environment Analysis of Mark & Spenser

Business
Environment
LSBM103 - Part B

INTRODUCTION.....................................................................................................................................3
MAIN BODY............................................................................................................................................3
Value Chain Model.............................................................................................................................3
Overview of Mark & Spenser.............................................................................................................4
Internal environment ........................................................................................................................5
Reflection on Value Chain Model.......................................................................................................8
CONCLUSION.........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
Business environment can be defined as the presence of the internal and external
factors which directly or indirectly influence business operations. In simple term it can be
said that, presence of factors in internal and external enviornment affect each other as well as
also work together which affect working of an organisation (Calabrese and et. Al., 2018). So
it is necessary for business firm to examine the factors which are present in business
environment in effective manner because it will result in implementing positive outcomes and
reducing negative effects. This assessment is based on Mark & Spenser which is a
multinational organisation headquartered is located at Westminster, London. This business
speacialises in delivering high quality clothing’s as well as food products. Respective
organisation was founded in 1884 and serving at worldwide level. In relation to M&S
respective report will discuss Value Chain model and internal environment analysis.
MAIN BODY
Value Chain Model
Value chain model is a theoretical model which has been formed by Michael Porters.
This model focuses on analysing the business activities and identifying ways through which a
business can achieve competitive advantage . In simple terms it can be said that value chain is
collection of activities which an organisation perform for creating value for their customers.
In addition to this it create competitive advantage foreign business from as well as also result
in higher profitability (Rogers, 2018). It is divided into part first is primary activity and
second is secondary activities. Here primary includes inward logistic, operations, outbound
Logistic, and services relating to marketing and sales. On the other hand, secondary activities
include recruitment, management of human resources, technological development and
infrastructure (Porter's Value Chain, 2016). Explain explanation of these are as follows :-
Primary activities of Value Chain Model
 Inbound logistic – Within this relation with suppliers are includes and also activities
which requires reception, storing as well disseminating inputs.
 Operations – It is related to activity which is needed for transforming raw material
(inputs) within outputs (finish goods i.e., product and services).